Jeremiah Phillips of First Mutual Corp

Here are 6 tips to help get your application approved sooner rather than later.
 

Tip #1. Do Your Legwork Ahead Of Time - Understand the basics of refinancing and what various terms mean before you apply.  You should also know what the prevailing rates are and whether you want to pay points to “buy down” your rate to a lower level.  Once you have that information, decide whether you want a fixed-rate loan, an adjustable or some type of modified product (which remains fixed for three to seven years before becoming adjustable).  If you decide on a fixed-rate, determine whether you want a 15-, 20-, 25- or 30- year loan.  Keep in mind, the shorter the loan, the faster you build equity and the less overall interest you pay.
 

Tip #2. Don’t Try To Figure Out Where The “Interest Rate” Curve Will Go - For one thing, it’s impossible. Nobody knows in advance how low interest rates might go, or when they’ll start to climb. Rather than trying to predict the unpredictable, just get locked in a program that works for you.
 Besides, waiting for rates to fall is usually counterproductive.  Not only might rates rise, your indecision is a sign that you’re not really serious about refinancing.  This could drop your application back to the bottom of the pile.

 Tip #3. Are There Really Any Shortcuts - Many lenders have an incentive to get your loan approved sooner.  So ask your current and prospective lenders if they have any programs to get you to the finish line quicker.  Among the possibilities:
     
 ·         Loan modification - These programs basically lower the rate on your existing loan without changing the length of the loan. Loan modifications aren’t available to most borrowers, since their loans have already been sold on the secondary market and can’t be changed.  But it never hurts to ask your current lender if such a program is available.
 ·         Streamlining - Some lenders offer a quick refinancing for current customers.  You typically pay a slightly higher rate for the convenience and speed.
 Tip #4. Use A Mortgage Professional - If you have troubled credit, an unusual financial situation or are just overwhelmed by the process, it can pay to have an advocate who knows the system to help you sort through your options.  That’s the role a good mortgage professional can play.
 Mortgage professionals do business with many different lenders and often have an inside track that can help speed up the process.  In addition, mortgage professionals can offer more personalized service and are there through the entire loan process. To find one, ask your friends and neighbors for a referral.
 Tip #5. Have Your Paperwork Ready - Here’s what most lenders will ask for when refinancing your home.
 One month of pay stubs
Your most recent W-2 forms
Last year’s tax return (or tax returns for the past two years if self-employed or employed at your current job for less than 2 years)
Bank and brokerage statements for the last month
Mortgage statement
Statements for any home equity loans or lines of credit
Homeowners insurance statement
Past commission statement(s) if you’re in sales
Smart borrowers will provide even more information, particularly if they’re self-employed or have any kinks in their finances. For example, instead of one year’s worth of tax returns, you should provide 1040s for two or three years, as well as pay stubs for two months and statements from your 401(k) and other retirement accounts.
  Tip #6. Follow Up And Follow Through - If you really want to expedite the process, you should fax, overnight or hand-carry any paperwork that’s requested.  Don’t wait for the regular mail and don’t delay responding to a request for more information.  Even short delays will send the wrong message to the underwriter.  If you don’t return your documents for a week, it conveys to the lender you’re not as excited about this loan as somebody who gets their documents back the next day.
 Keep the heat on by calling or e-mailing your loan officer every few days until your loan is approved.  Be polite and friendly, but make it clear you want the process to go as quickly as possible - remember, the squeaky wheel that gets the grease.
 
**Rates Have Dipped!  If you are thinking of refinancing call us today for a free rate quote.
  If you do not have time to speak with me today please feel free to fill out this Secure Online Mortgage Application to help jump start your loan process…  
    

How does one get out of a mortgage that is adjusting to a payment you can not afford?

The answer is FHASecure Iniaitive! 

This new plan to help nearly 250,000 people save their home from adjustable rate mortgages that reset too high.

Here are the highlights of the FHASecure Initiative:

1. The mortgage being refinanced must be a non-FHA ARM that has reset.   Your loan must have adjusted already to be eligible.

2. The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.  You can be late on your mortgage but you must prove that you were not late prior to the reset and that the reset is the only reason why you have lates now. 

3. If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.  If you are on a plan with missed mortgage payments that need to be paid, they can be rolled into your new loan, so long as you have enough equity.

4. Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2), the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing.  

Let’s say you owe $300,000 on your home but its only worth $270,000 today.  You can get a new FHASecure loan for $261,900 and a new loan for $38,100 from your new lender or the current holder of your mortgage if they will go for it.   This new note terms and payments have to be factored into your qualifying ratios but if they are deferred for 36 months, they don’t have to be.    These combined loans can exceed 100% and can exceed the FHA loan limit in your area.

5. Lenders must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor’s inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

The bottom line is this is not a free pass.  If you are late only because your ARM adjusted and you can prove it, this program is the best way to save your home and your credit.

However, this is a terrific new program and once again demonstrates why FHA has been with us for decades. 

Today a lot of people woke up to finding out that Greenpoint Mortgage along with others have gone out of business. 

In the past few weeks I have met with, had conference calls and read articles on all the changes and how it is going to affect YOU the end consumer in getting loans. 

Over the past 5 years the mortgage industry has been stretched out like a rubber band to the seams and having loan programs that would allow some pretty wild things to happen (I.E. Lower credit score’s, 100% Financing & Not verifying certain information such as income and even employment).  Well the changes we are enduring right now is the snap back from the rubber band and constricting to a point of not doing most of those loans we have been so accustom to doing with out batting an eye at. If you a consumer who fits into one of the above categories all I can say is let’s update those pre-approvals you have.  Don’t think that you just did it a week ago that everything is ok - right now the mortgage market is changing on a minute to minute basis.  

Have a great weekend!!!  I also want to roll out my HOT LINE # which is getting me where ever I am at please do not hesitate to call - 609-257-4456. 

 Jeremiah

I got a call from a new client over the weekend and they had mentioned they don’t believe they can get 100% financing as a First Time Homebuyer.  First thing I said was where did you get that information - because it is a false statement.

As a First Time Homebuyer you qualify for some of the best programs at 100% that I’ve seen in a long time.  Perfect example a good friend of mine bought a house last month and I got him into without $1 dollar out of his pocket at closing.  Will that happen on every purchase no.  But with the seller concession and the 100% loan I gave him he got a great rate and still had the money he needed to buy new furniture. 

I have this loan as an 80/20 option as well to avoid mortgage insurance as well… Give me a call if you have any questions.  You don’t have to be a First Time Homebuyer to get this loan either.

This blog is generated today due to why choosing a Mortgage Banker over a Mortgage Broker can really effect more then you think.  I am a mortgage banker (I know I need to make that clear). 

Rates: This is the number 1 asked question:

The Banker gives out rates that the bank he/she works for gets direct from wall street.

A Broker get’s rates from a bank that deals directly with wall street.  Now can someone broker a loan with a bank? The answer is yes - this is where it becomes a little confusing.  For all in-tense and purposes a Banker get’s the best interest rates vs. a true mortgage broker.

Fee’s: Which is more or less?  The fee’s change from mortgage company to mortgage company naturally but one thing does stay constant when you are a broker you need to pay your staff and the mortgage company you are brokering the loan too.  Usually to you the borrower it means more money to close.

Now this is the biggest reason you want to use a Mortgage Banker vs. a Mortgage Broker:

CONTROL

I am a mortgage banker and one thing I can do with my loans is control the loan from the time we do your inital application all the way through closing!  This is important because if I have something you need to get me there is no red tape on where to send it to (your loan in underwriting and trying to clear for closing) the underwriter because this individual is in my office.  This also means I can walk your paperwork to the underwriter for quicker decisions in time crunch situations.

HIGHLIGHT OF THE MONTH (SO FAR): Me and my staff did a complete clear commitment inside 24 hours of the borrower calling me on my cell phone at night subject to the appraisal being completed - which happened the next morning.  Please don’t hesitate if you need anything short of a miracle to get your loan closed!

I received this great email and I know that this question comes across a lot… Please feel free to call me and ask me questions… Also keep in mind and go back to the handyman blog before this one - they both can be used together.

Hello Jeremiah. Hope you are doing well. I am hoping you can shed some light on some questions I have regarding loans for investment properties.How does one qualify for a second mortgage on an investment property? I hear that lenders rather have a property that is already rented to ensure cash flow or they require the real estate agent to write that the property has potential cash flow and that will be enough. Is this true? Can you just tell me what the general rule of thumb is to be a candidate for investment property loans?

A question I get a lot when working on mortgages is: Can I get more then I am purchasing the house for help do some renovations?  This question can be answered with a “YES”.  If you are looking at handy man specials or possibly tearing down a home and rebuilding it-  I have the loan for you.

 I have done a few of these for my friends from buying a row home in Philadelphia to a house in the South Jersey suburbs and they love it!  One of my friends was able to turn around and sell the house and profit over $30,000 and only having to make one mortgage payment out of his pocket before it was sold-  ASK ME HOW!

To get started the final value of the home is going to need to be valued higher then the totals of the initial cost and the renovations. Each situation is different and if you are going to be living in the house after the house is renovated we can give you a loan with less left over equity at the end of the day.

How is works?
1. At the time of closing we will do a mortgage for the cost of the house and the renovation costs. There will be draws against the renovation costs as you finish some of the work. A certified contractor will be needed to verify the work has been done.

2. After all the work is done depending if you are an investor or this is going to be your primary residence we will not have to close again or we will have to do a final closing based on the finished value of the home.

Note: If there is enough equity in the house the mortgage payments during the construction phase will actually be added into the mortgage: Meaning - NO CASH OUT OF YOUR POCKET, which I like!

We will have to get estimates from professionals in the fields of work that the renovations are going to be done. This does not mean they have to perform the work. If you are a skilled laborer and you are going to do some of the work yourself it could save you money as long as the work performed meets building code requirements.

As with any type of loan the applicant must qualify according to the loan qualification guidelines but considering one of the guidelines is a minimum 620 credit score it appears many will take advantage of becoming a first time home owner or consider investing in real estate.

If you would like to talk about this loan, how it works, and how to qualify for it give me a call at 609-760-9234 or email at jphillips@firstmutualcorp.com…. I am available weekends and evenings!

100% 1 LOAN NO MORTGAGE INSURANCE
  If you don’t think you can qualify for 100% think again!!! 

We offer 100% financing with a 620 or better credit score – Full Documentation! We also offer 100% financing with a 620 or better credit score – Not verifying your income (STATED). 

This can be for buying your first home, a house down at the shore, investment property or even cash out refinance! The best part about this loan is that it is only 1 loan with NO MORTGAGE INSURANCE!!!!   That’s right NO MORTGAGE INSURANCE!!!